Q & A

Our friend has asked me if I could be a guarantor for her to rent accommodation. She is bankrupt, not working and is on income support with two children. We have two mortgages, one on our own residence and one on a buy-to-let property. We need to know what the implications are, as we are looking to buy another property this year and need to know if this will make it difficult for us to obtain a further buy-to-let mortgage.

Roughly speaking, you ought not to have any problems getting a further mortgage if you act as guarantor and the most you are ever likely to need to stump up is about three months of your friend's rent (though, as you are willing to act as guarantor, you presumably feel that she is unlikely to default).

Your friend can expect to be asked for much more information than a standard prospective tenant and it may take her more time to find a place. She will be perceived as higher risk because of her bankruptcy, the fact she is on benefits and requires a guarantor.

Julie Westby, president of the National Association of Estate Agents, says: 'Lettings agents have a duty to protect their landlords' interests so will want to know the nature of this person's bankruptcy, the situation with their benefits and employment and some detail about you as guarantor.' Westby points out that if there was a problem and your friend could not pay up, most agents would have such a tenant evicted in three months or less, leaving you liable for that amount of arrears.

The fact you are acting as guarantor ought not to be a barrier to buying a further investment property. Rob Clifford, managing director of mortgage adviser Mortgageforce, says: 'We would not expect lenders to take your acting as guarantor into account, but you ought to carefully weigh up whether you could keep up your mortgage repayments plus your friend's rent if needs be.'